A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T-shirt and domestic production rises to 15 million T-shirts per year. The quota on T-shirts causes domestic producers to
A. gain $25 million.
B. gain $30 million.
C. gain $5 million.
D. lose $5 million.
Answer: A
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Which of the following is false?
a. People looking for full-time work who grudgingly settle for a part-time job are counted as employed, even though they are only "partly" employed. b. Some people working in the underground economy could be counted in labor statistics as unemployed, while others may be counted as not in the labor force. c. Unemployment rates can be quite different across different segments of the population, as well as varying substantially over time. d. None of the above are false; all are true.
Which of the following groups of individuals is classified as unemployed?
a. Individuals who have voluntarily quit their old jobs and are looking for new ones. b. Individuals on strike. c. Individuals on vacation. d. None of the above are considered to be unemployed. e. All of the above are considered to be unemployed.
Refer to Figure 23.2 for a perfectly competitive firm. Given the current market price of $100, we expect to see
A. Firms enter the industry, driving down the market price. B. Firms exit from the industry, driving up the market price. C. No change in the number of firms in the industry and no change in the market price. D. Firms enter the industry, driving up the market price.
In the United States, inheritance accounts for roughly ________ of income inequality.
A. 10 percent B. 30 percent C. 50 percent D. 20 percent